Business Income Manual

Computing the amount to assess: business changes: contents

This chapter considers the principles which determine whether a commencement or cessation of trade has occurred. The taxation treatment on commencement of trade is described in BIM81015 and the cessation provisions are at BIM81025. Certain loss reliefs are available only on commencement (BIM85045) or cessation (BIM85055). Income relating to the trade, which arises after cessation has occurred, will be taxed as post cessation receipts. See BIM100000 onwards. The chapter also considers changes in the persons carrying on a trade, which normally is referred to as ‘succession’.